Cannot drag and drop folders and subfolders to new location under inbox

When I had windows 10 and a few previous Thunderbird versions, I had no issues dragging and dropping folders and subfolders to new folders or subfolders. This is not about sorting alphabetically, but manually moving a folder to a new location in my folder tree structure. I get the universal NO sign and cannot move them at all. I can drag and drop messages into these folders, but moving the folders are impossible. I have been trying to fix this with disabling add-ons, restarting, repairing the inbox folder, subscribing and unsubscribing folders, etc. and nothing is working. I have IMAP and an Outlook 365 email account set up. Using Thunderbird 102.12.0 (64-bit).